The Georgia House on Wednesday backed a proposal chamber leaders introduced only last week to lower the state’s income tax rate and raise the standard exemption, estimating the moves would save taxpayers about $1 billion a year.
But Kyle Wingfield, president and CEO of the right-leaning Georgia Public Policy Foundation, said an independent analysis done for the group said moving to a flat tax and cutting rates would create jobs in the state by promoting economic activity and investment. The analysis said by year five of the tax cut the measure would be responsible for roughly 21,000 more jobs.
“We believe it’s important for Georgia to provide relief to working families and remain competitive with our neighboring states,” Wingfield said. “Reducing the personal income tax rate, while also reducing the amount of income that is taxed, helps achieve both.”